Sage Potash Corp. press release
Sage announces closing of first tranche of private placement
TSXV - TSX Venture Exchange · Potash · Lithium · Bromine · Boron · Canada
TORONTO, April 17 /CNW/ - Sage Gold Inc. ("SAGE") is pleased to announce that on April 13, 2006, it closed a non-brokered private placement of 10,990,000 units ("Units") at Cdn $0.10 per Unit (the "Issue Price") for gross proceeds of $1,099,000 (the "Offering"). Each Unit consists of one common share ("Common Share") of SAGE and one half of one Common Share purchase warrant (each whole Common Share purchaser warrant a "Warrant"). Each whole Warrant entitles the holder thereof to acquire one Common Share at an exercise price of $0.15 for the first year following the closing date and $0.20 for the second year following the closing date. This is the first tranche of a $1.75 million Unit financing ($2,187,500 if the 25% Over-Allotment Option is fully exercised by SAGE) previously announced on April 6, 2006. SAGE expects the second tranche to close on or about April 20, 2006. In connection with the Offering, SAGE also agreed to pay $62,400 in finders' fees and granted to certain finders compensation options ("Options") to acquire 384,000 Common Shares with each option entitling the holder thereof to purchase one Unit at the Issue Price at any time that is 24 months from the date of closing. The Common Shares, Warrants, Options and the Common Shares issuable upon exercise of the Warrants and Options are subject to a statutory hold period that expires August 14, 2006. The proceeds from the Offering will be used by SAGE for exploration on its properties in Ontario and Nevada and general working capital.
SAGE is a mineral exploration and development company which has an interest in seven exploration properties in Ontario and Quebec and six exploration properties in Nevada. SAGE's main properties are the Kerrs Gold/Lake Abitibi property (the "Kerrs Property") which is located in the northern part of the Larder Lake Mining Division in northeastern Ontario and the Dixie Fork, Triple Junction, Pony Spur, Dike, Corridors and Sugarloaf properties (collectively, the "Nevada Properties") which are situated in northeastern Nevada, within Elko County. Technical reports relating to the Kerrs property and the Nevada properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com There are 58,681,881 issued and outstanding common shares.
This release was prepared by management of the Company who takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production. The Company disclaims any obligation to update forward-looking statements.